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What are the differences between junk bonds and fallen angels?

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All fallen angel bonds are junk bonds, but all junk bonds may not be fallen angels. read more

All fallen angel bonds are junk bonds, but all junk bonds may not be fallen angels. A bond becomes a fallen angel when it is issued at a low yield (High credit rating) and subsequently gets downgraded to speculative grade by several credit rating agencies, thereby becoming a high yield bond. read more

A fallen angel is a bond that was given an investment-grade rating but has since been reduced to junk bond status due to the weakening financial condition of the issuer. read more

Historically, average yields on junk bonds have been 4-6% above those for comparable U.S. Treasuries. Junk bonds can be broken down into two other categories: Fallen Angels-This is a bond that was once investment grade but has since been reduced to junk-bond status because of the issuing company's poor credit quality. read more

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